This project presents an affordable indoor localization setup for mobile robots, particularly in aerial vehicles using accelerometers, gyroscope, and a set of ultra-wideband (uwb) sensors. the position and heading are estimated using the sensor fusion technique by extended information filter. this method can provide the location in a gps denied arena and, can eliminate the inertial yaw-angle drift due to magnetic deviation in industrial environments. it is a cheap and compact way to implement autonomous service robots in a known background. the mobile robots need position and orientation data for navigation. in the industrial environment and indoor arena, we cannot use conventional gps and magnetic compass sensors due to noises and interference with other electric devices. our method can be used on the robot with prior set up in the environment to estimate the position and heading data, with which the robot can be used for inspection, surveillance, transportation, and other services in the industries. even co-ordination of multiple robots without collision avoidance is possible with this system.